How State Education Agencies Are Leveraging ESSER Funds

CCSSO has been tracking states using the federal money to invest for the greatest impact

Online data tools created by the Council of Chief State School Officers can help district leaders explore how states have used ESSER set-aside funds and make informed decisions to improve educational outcomes across their districts. 

January 10, 2025

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School districts across the country are facing a significant decrease in federal funding for the 2024-25 school year compared to 2023-24. Among the 50 urban districts randomly reviewed, nearly half reported budget cuts, shortfalls, deficits, or declining revenues for 2024-25. Contributing factors to these financial challenges include the expiration of federal COVID relief funding, declining enrollment, rising inflation, labor shortages requiring higher compensation to attract and retain educators, and inadequate state funding.

From March 2020 to March 2021, Congress allocated close to $190 billion in pandemic relief for K-12 schools through the American Rescue Plan (ARP) Elementary and Secondary School Emergency Relief (ESSER) fund. This one-time funding initiative had a final obligation deadline of September 30, 2024. While this was the last date to obligate funds, the U.S. Department of Education has indicated it may extend liquidation deadlines to ensure resources remain available to address the pandemic impact on students, schools, and families.

The Council of Chief State School Officers (CCSSO) notes that an extension could allow more time for states to receive goods and services under binding contracts made by the September 30 deadline. States could reserve 10% of ESSER funds—roughly $19 billion nationwide—for their state education agencies (SEAs). For district leaders, understanding how states are using these ESSER set-aside funds opens opportunities to meet school budget needs or seek support for high-quality educational programs.

KEY INSIGHTS FROM CCSSO’S DATA TOOLS
Since the summer of 2022, CCSSO has been tracking how state agencies are using the 10% ESSER set-aside funds. States have shifted spending priorities across the three ESSER funding rounds. Initially, ESSER I funds primarily addressed urgent pandemic needs, such as internet access, devices, remote learning materials, and additional support for local districts. However, ESSER II and ESSER III funds have increasingly focused on long-term student learning impacts, including investments in high-dosage tutoring and extended learning time.

According to CCSSO’s dashboard, school districts have allocated ESSER state reserve funds mainly toward tutoring and accelerated learning initiatives ($4.4 billion), summer enrichment and after-school programs, and extended school days or years ($3.0 billion). An additional $2.0 billion has been directed to local supplements, including noncompetitive discretionary grants for districts, particularly small and rural districts, non-Title I schools, state-run institutions, and charter schools.

States vary widely in their priorities for ESSER set-aside funds. For instance, Colorado has invested $9.5 million in a mentorship program designed to support student teachers, clinical residencies, and new teachers. Massachusetts has allocated over $5 million to establish Acceleration Academies for math-focused programs for students in grades three through 10. Meanwhile, Oklahoma has used $1.2 million from ESSER III to expand three principal support initiatives, including a principal leadership academy for early-career principals and a data institute to help school leaders leverage student data to improve academic outcomes.

INVESTING FOR IMPACT: A KEY MOTIVATION FOR SECURING FUNDING
As noted by CCSSO, “It takes time to conduct rigorous, causal research on the impact of educational investments.” Although long-term research on ESSER investments is ongoing, early evidence indicates that many state-level initiatives already are yielding positive results. Understanding which programs are most effective can help district leaders make sound decisions and encourage funders to continue investing.

Addressing the teacher shortage
The teacher shortage remains a critical issue for public schools. In Kansas, $15 million have been allocated to provide science of reading training for a wide range of educators, including elementary school teachers, school principals, special education teachers, and English learner instructors. Faculty from teacher preparation programs also are eligible. By the end of 2023, nearly 6,000 active licenses had been issued for this training.

Combatting chronic absenteeism
Chronic absenteeism has worsened since the pandemic, with nearly 30% of students—about 14.7 million—chronically absent in the 2021-22 school year, missing at least 10% of school days. In response, New Mexico partnered with Graduation Alliance to reengage and reenroll high school students who had become disengaged. According to CCSSO data, an evaluation of the Hobbs School District showed that 82% of targeted students improved attendance, with an overall cost of $294 per successful outcome.

Career pathway programs
Career pathway programs are highly valued in many school communities. In Indiana, the state launched the Crossing the Finish Line initiative, in partnership with state agencies and higher education institutions. Since its inception in 2021, the program has helped 1,900 high school juniors and seniors across 275 Indiana schools earn credits at no cost over the summer. A district counseling director explained, “We are teaching them and helping them see that, even if they choose to enter the manufacturing field, completing these credentials opens up better job opportunities.”

Sustainably investing in high-quality curricula should be a top priority for state and local education leaders. With CCSSO’s data tools, district leaders can explore how states are using ESSER set-aside funds and make informed decisions that improve educational outcomes across their districts. 

To learn more about the process for utilizing ESSR set-aside funds, and to view the CCSSO dashboard, please visit the link at https://tinyurl.com/5dht6dpy.

Jinghong Cai is the senior research analyst at NSBA’s Center for Public Education.